UPDATE: Wells Fargo CEO John Stumpf is leaving the company.
Even as outrage grows over Wells Fargo’s creation of millions of fake user accounts, yet another stunner is the hefty sum CEO John Stumpf could receive if he does leave his post.
Stumpf’s exit package totals about $200 million, according to a CNNMoney analysis, and comprises cash as well as Wells Fargo stock and options.
The analysis further uncovered that even if Stumpf is fired, say for violating company policy, he will only lose a small portion of that payout. Much of that nine-figure sum comes not from a “golden parachute,” the compensation clauses common in CEO contracts that allow them to earn millions when they are let go or the company is sold. Instead, it comes from his stock options and other bonuses he has earned during his 30 years at Wells Fargo and its predecessor.
Stumpf has been CEO since 2007 and last year was the highest-paid banker of all banks listed with the S&P 500, earning $19.3 million, earning over one million more than JPMorgan Chase CEO Jamie Dimon.
Under Stumpf’s leadership, the bank has become embroiled in a phony accounts scandal, resulting in a thorough tongue-lashing from Elizabeth Warren during Tuesday’s Senate Banking Committee hearing and $185 million in penalties. The bank also fired 5,300 people for taking part in the false accounts practices, but senators have called for the Department of Labor to investigate the firings.
Calls for Stumpf’s resignation as CEO have grown louder, and on Thursday, he stepped down from a Fed advisory board with the San Francisco branch of the Federal Reserve.